Marshall Company Uses a Standard Cost System

question 208

Multiple Choice

Marshall Company uses a standard cost system.Variable overhead costs are allocated based on direct labor hours.In the first quarter,Marshall had a favorable efficiency variance for variable overhead costs.Which of the following scenarios is a reasonable explanation for this variance?

• A) The actual number of direct labor hours was lower than the budgeted hours.
• B) The actual variable overhead costs were higher than the budgeted costs.
• C) The actual variable overhead costs were lower than the budgeted costs.
• D) The actual number of direct labor hours was higher than the budgeted hours.

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Definitions:

Urethral Meatus

The external opening of the urethra, through which urine exits the body from the urinary bladder.

Perineum

The area between the anus and the genitals, both in males and females, that contains various muscles and tissues.

Lithotomy

A medical position in which a person lies on their back with the hips and knees flexed and the legs apart and raised, often used during childbirth or certain medical procedures.